2015年CRI IMF Decides to Include China's RMB in SDR Basket

 

Reporter:

"The IMF's executive board decided¹ that the renminbi qualified² for the SDR basket and existing criteria³."

Christine Lagarde, managing director of the IMF, made the announcement in Washington.

Lagarde says the decision is an important milestone⁴ in the integration⁵ of the Chinese economy into the global financial system.

"The addition and the inclusion of the renminbi in the SDR basket of currencies is a recognition of the significant reforms which have been conducted, of the significant opening up of the Chinese economy, of the financial, more market-driven principles that are being used by the Chinese authorities going forward. That is clearly symbolic⁶ in a way of all those reforms, which is why I associated the renminbi inclusion with the reforms conducted and to be continued."

According to IMF, the RMB will have a weighting of 10.92 percent in the new SDR basket, while the respective weighting of other currencies in the basket are 41.73 percent for the U.S. dollar, 30.93 percent for euro, 8.33 percent for the Japanese yen⁷ and 8.09 percent for the British pound.

Tan Yaling, Head of China Forex Investment Research Institute, believes the move is a recognition of Chinese currency in the international society.

“After the inclusion to SDR, RMB can be used for settlements among central banks. It's good to improve its international standings and we should seek this opportunity to strengthen our real economy."

RMB was rejected into the inclusion of SDR five years ago on the basis of not "freely usable".

During the past five years, Chinese authorities have undertaken a series of reforms, such as improving its foreign exchange rate formation system, and opening up its interbank bond and forex markets.

According to the Society for Worldwide Interbank Financial Telecommunication⁸, renminbi now ranks fifth as a global payments currency and seventh as a global reserve currency.

Huang Yiping, an adviser⁹ to China's central bank, explained how the inclusion will affect people's lives in the future.

"That RMB being included in the SDR basket means that it is now one of the most important currencies globally. It is a great push in making the RMB truly international, and encouraging individuals and organizations of all countries in the world to hold it as well as invest it,"

Huang adds that the inclusion of the RMB into the SDR also reduces the exchange rate risks of financing, and lowers the trade costs when Chinese people shop abroad

The IMF's Special Drawing Rights basket is a type of international reserve asset that IMF members can turn to in times of need.

The basket is currently made up of the US dollar, the euro, the British Pound and the Japanese Yen.

It's composition is reviewed every five years.

The inclusion of the RMB will take effect Oct. 1, 2016.

For CRI, this is He Fei from Washington. 

1 decided   

adj.决定了的，坚决的；明显的，明确的

参考例句：

• This gave them a decided advantage over their opponents.这使他们比对手具有明显的优势。
• There is a decided difference between British and Chinese way of greeting.英国人和中国人打招呼的方式有很明显的区别。

2 qualified   

adj.合格的，有资格的，胜任的，有限制的

参考例句：

• He is qualified as a complete man of letters.他有资格当真正的文学家。
• We must note that we still lack qualified specialists.我们必须看到我们还缺乏有资质的专家。

3 criteria   

n.标准

参考例句：

• The main criterion is value for money.主要的标准是钱要用得划算。
• There are strict criteria for inclusion in the competition.参赛的标准很严格。

4 milestone   

n.里程碑；划时代的事件

参考例句：

• The film proved to be a milestone in the history of cinema.事实证明这部影片是电影史上的一个里程碑。
• I think this is a very important milestone in the relations between our two countries.我认为这是我们两国关系中一个十分重要的里程碑。

5 integration   

n.一体化，联合，结合

参考例句：

• We are working to bring about closer political integration in the EU.我们正在努力实现欧盟內部更加紧密的政治一体化。
• This was the greatest event in the annals of European integration.这是欧洲统一史上最重大的事件。

6 symbolic   

adj.象征性的，符号的，象征主义的

参考例句：

• It is symbolic of the fighting spirit of modern womanhood.它象征着现代妇女的战斗精神。
• The Christian ceremony of baptism is a symbolic act.基督教的洗礼仪式是一种象征性的做法。

7 yen   

n. 日元；热望

参考例句：

• He wanted to convert his dollars into Japanese yen.他想将美元换成日币。
• He has a yen to be alone in a boat.他渴望独自呆在一条船上。

8 telecommunication   

n.电信，远距离通信

参考例句：

• Telecommunication is an industry of service.电信业是一个服务型的行业。
• I only care about the telecommunication quality and the charge.我只关心通信质量和资费两个方面。

9 adviser   

n.劝告者，顾问

参考例句：

• They employed me as an adviser.他们聘请我当顾问。
• Our department has engaged a foreign teacher as phonetic adviser.我们系已经聘请了一位外籍老师作为语音顾问。